The Agriculture Committee passed a similar measure last year but it failed to advance before the end of the biennium.

The new version includes exemptions from labeling requirements -- such as beef and chicken from animals fed genetically engineered feed, for example.

"Lawmakers are hearing from their constituents," said Dan Barlow, of Vermont Businesses for Social Responsibility which supports the bill. "This is a grassroots movement and legislators are responding to that."

Vermont is one of 20 states now considering GE (or GMO) labeling legislation.

Most backers say that consumers have a fundamental right to know what is in the food they buy at the store.

But supporters also acknowledge the risk of a lawsuit from manufacturers of genetically engineered seeds should the bill win final passage.

"This is the largest state sponsored consumer deception bill I've ever seen," said United Dairy Farmers of Vermont spokeswoman Maggie Laggis, after Friday's vote. "Vermonters are being led to believe there's something different in these products than others on the shelves and there's no difference. no nutritional difference, no health and safety difference," she said.

House Speaker Shap Smith supports the bill, but said the final version must be able to "survive a constitutional challenge."

The risk of an expensive lawsuit was among the reasons Rep. Harvey Smith, a Weybridge Republican voted no.

He added that 85-90% of the soybeans and corn planted in Vermont is genetically engineered, seed he said has been "wonderful" -- allowing reduced fertilizer and pesticide use.

The labeling bill now moves on to the Judiciary committee for review.

The proposal would take effect in mid-2015 -- or when at least two other states adopt similar legislation.